Not upheld: Card / payment disputes complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr M purchased a defective mobile phone for £660 and sought a chargeback through Chase after receiving it in poor condition. He repaired the phone at his own expense without contacting the merchant first. Chase declined the chargeback claim based on MasterCard scheme rules requiring merchant contact and goods availability for return. The ombudsman found Chase acted fairly in declining the claim, though acknowledged communication delays and service failures. The £75 compensation already paid by Chase for these service issues was deemed fair and reasonable, with no further remedy directed.

The Ombudsman's reasoning

The ombudsman found that Chase correctly applied MasterCard scheme rules in declining the chargeback. The rules require cardholders to contact the merchant first and have goods available for return, neither of which applied to Mr M's case since he repaired the phone without contacting the merchant. While Chase's communication failures were acknowledged and partially upheld, the £75 compensation already paid was deemed fair and reasonable for the inconvenience caused by delays and lack of updates.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website